The white knight for Palm has arrived in the form of Hewlett-Packard. The companies’ respective board of directors have given the thumbs up and their stockholders and regulators are sure to follow suit shortly.
The business phone pioneer will not only survive, they are almost sure to thrive with HPs hold in the market. The purchase valued at around £786 million and is sure to bring a worthy contender for Apple and Google in the smart phone market with HP’s marketing prowess and Palm’s most obvious asset, the webOS, along with their vast patent portfolio.
This would definitely broaden Palm’s global reach. The Palm CEO and chairman, Jon Rubinstein, will of course stay along for the ride. Not a surprising turn of events since he was really rallying at Palm’s front despite how grim things looked for a while. Todd Bradley, the Executive VP of HP’s Personal Systems Group had this to say about the decision (from Hewlett-Packard’s Press Release):
“Palm’s innovative operating system provides an ideal platform to expand HP’s mobility strategy and create a unique HP experience spanning multiple mobile connected devices. And, Palm possesses significant IP assets and has a highly skilled team. The smart phone market is large, profitable and rapidly growing, and companies that can provide an integrated device and experience command a higher share. Advances in mobility are offering significant opportunities, and HP intends to be a leader in this market.”
Now, HP has an edge against their rival Dell who is also venturing into the mobile phone business and Palm will have a better marketing direction for their products. Consumers are the real winners though, since the competition is sure to be close. It is safe to say that there will be more smart phone options and better deals since all prominent players will constantly be on their toes.
Tags: Hewlett-Packard, HP, Palm